Fed

Wall Street's main indexes rose on gains in beaten-down growth and financial stocks on Wednesday even as investors braced for a bigger interest rate hike by ...

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The Federal Reserve raised interest rates by three-quarters of a percentage point Wednesday in an effort to combat stubbornly high inflation.

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Washington — La perspective agite les marchés depuis le début de la semaine: la banque centrale américaine, la puissante Fed, pourrait annoncer mercredi la ...

Mais l’inflation demeure «élevée reflétant les déséquilibres entre l’offre et la demande liées à la pandémie, les prix de l’énergie plus élevés et plus largement les pressions sur les prix», a-t-elle ajouté. La banque centrale américaine (Fed), «fortement déterminée à ramener l’inflation à son objectif de 2%», a relevé mercredi ses taux directeurs de trois quarts de points de pourcentage, soit la plus forte hausse depuis 1994, pour tenter de contrôler une inflation plus forte qu’escomptée. La banque centrale américaine a annoncé mercredi la plus forte hausse de ses taux directeurs depuis 1994.

The Federal Reserve on Wednesday hiked interest rates by three quarters of a percentage point, its most aggressive move yet to try to control inflation, ...

The Fed’s leaders hope that interest rate hikes will slow demand for workers and help get the labor market — which has about two job openings for each person looking for work — back on a more sustainable path. In an encouraging sign, the red-hot housing market has started to cool, as a run-up in mortgage rates discourage aspiring buyers from competing for the few homes available. The Fed also has a slightly weaker outlook on the U.S. economy for later this year. Also, the Fed had a more dour look at inflation levels later this year. The repercussions of rising inflation are playing out globally. Fed officials are under pressure to lower inflation and slow the hiring without causing people to lose their jobs. Additionally, a poll by The Washington Post and George Mason University’s Schar School of Policy and Government found that most Americans expect inflation to worsen and are adjusting their spending habits, a mind-set that can make the surge in prices even worse. (Kansas City Fed President Esther George voted against the rate decision, preferring a small hike of half a percentage point.) So far in 2022, losses have wiped out a hefty chunk of the stock market’s pandemic-era gains. The move to hike interest rates will make the price of mortgages, auto loans and a wide array of business investments more expensive. But a surprisingly bleak inflation report released last week, the war in Ukraine plus growing signs that the markets and American public have lost faith in the Fed, ignited a more forceful push from central bank policymakers as they wrapped up two days of meetings. “We thought that strong action was warranted at this meeting and we delivered on that," Federal Reserve Chair Jerome H. Powell said in a news conference following the decision.

Federal Reserve Chair Jerome Powell, who's carefully telegraphed interest rate hikes over four years, looks likely to abandon gradualism and move more ...

He’s got to wear the black suit and dark tie.” The projections could show the jobless rate rising in 2023 and 2024 from a 3.5% forecast for this year. US retail sales fell in May for the first time in five months, restrained by a plunge in vehicle purchases and other big-ticket items, Commerce Department figures showed Wednesday. Excluding vehicles, sales rose 0.5% last month. The code for recession is whether they see unemployment going up in 2023 or not. Markets have now provided the Fed with an opportunity to move more swiftly.” The FOMC gave investors several months of notice before stopping its purchases of Treasuries and mortgage-backed securities and raising interest rates from zero in March. The Fed is concerned by “upside risk to the inflation-generating process. The Fed has a goal of 2% inflation, based on a separate measure -- the personal consumption expenditures price index, which was running at 6.3% in April. You can’t make the mistake of the 1970s. Powell last month said the Fed wasn’t actively considering a 75 basis-point move, while not ruling it out if conditions changed. Citigroup Inc. and Bank of America Corp. economists are among those who still think the Fed will shift by 50 basis points as previously planned. “You worry about the risk of breaking something.

The U.S. Federal Reserve delivered a 75-basis-point interest rate hike on Wednesday, the largest such increase in 28 years amid rampant inflation.

The 4.1 per cent jobless rate seen in 2024 is now slightly above the level Fed officials generally see as consistent with full employment. While no policymaker projected an outright recession, the range of economic growth forecasts edged toward zero in 2023 and the federal funds rate was seen falling in 2024. The stricter monetary policy was accompanied with a downgrade to the Fed’s economic outlook, with the economy now seen slowing to a below-trend 1.7 per cent rate of growth this year, unemployment rising to 3.7 per cent by the end of this year, and continuing to rise to 4.1 per cent through 2024. The action raised the short-term federal funds rate to a range of 1.50 per cent to 1.75 per cent, and Fed officials at the median projected the rate increasing to 3.4 per cent by the end of this year and to 3.8 per cent in 2023 – a substantial shift from projections in March that saw the rate rising to 1.9 per cent this year. The rate hike was the biggest made by the U.S. central bank since 1994, and was delivered after recent data showed little progress in its inflation battle. The Federal Reserve raised its target interest rate by three-quarters of a percentage point on Wednesday to stem a disruptive surge in inflation., and projected a slowing economy and rising unemployment in the months to come.

The Federal Reserve raised interest rates by 75 basis points -- the biggest increase since 1994 -- and Chair Jerome Powell said officials could move by that ...

La banque centrale américaine (Fed), « fortement déterminée à ramener l'inflation à son objectif de 2 % », a relevé mercredi ses taux directeurs de trois ...

Mais l’inflation demeure « élevée reflétant les déséquilibres entre l’offre et la demande liés à la pandémie, les prix de l’énergie plus élevés et plus largement les pressions sur les prix », a-t-elle ajouté. « L’activité économique générale a rebondi », après s’être contractée au premier trimestre, note la Fed dans un communiqué publié à l’issue de sa réunion, citant « des gains d’emplois robustes ces derniers mois et un taux de chômage restant à un faible niveau ». (Washington) La banque centrale américaine (Fed), « fortement déterminée à ramener l’inflation à son objectif de 2 % », a relevé mercredi ses taux directeurs de trois quarts de points de pourcentage, soit la plus forte hausse depuis 1994, pour tenter de contrôler une inflation plus forte qu’escompté.

Fears have mounted that the central bank might trigger a recession sometime in the next year with its aggressive rate action.

Despite laying out a steeper path for interest rates, Fed officials don’t expect to kill price spikes this year, as Russia’s invasion of Ukraine and Covid-related lockdowns in China further inflame the consumer price inflation that gathered momentum last year. But they project inflation to drop to 2.6 percent in 2023. But they are predicting some economic pain regardless, expecting the unemployment rate, now near modern-era lows at 3.6 percent, to tick up over the next few years. But the central bank is betting that more assertive steps now will prevent even more economic pain later. Over the remaining four meetings this year, the policymakers expect to raise their key rate to between 3.25 percent and 3.5 percent — much higher than where they previously expected to go. The policymakers had let it be known for weeks that they were planning to hike rates by half a percentage point, but after a widely watched inflation report on Friday came in worse than expected, they quickly pivoted to take more drastic action — a rare move by the central bank.

Goldman Sachs economists now expect the Fed will hike rates by another 75 basis points in July—causing a "meaningful" drag on economic growth.

The economy quickly and bounced back after the Covid-19 recession in 2020, but the Fed’s withdrawal of pandemic stimulus measures this year has hit stocks and sparked renewed fears of a recession. Uncertainty has come to a head in recent weeks, with all major stock indexes plunging into bear market territory this week, and the U.S. economy unexpectedly shrinking 1.4% last quarter. The Fed's next policy meeting concludes on July 27—two weeks after inflation data for June is set to be released.

La Fed augmente ses efforts pour resserrer le crédit et ralentir la croissance parce que l'inflation annuelle a atteint 8,6 %, un sommet de quatre décennies, ...

Les Américains commencent à s’attendre à ce que la période de forte inflation dure plus longtemps qu’ils ne le croyaient précédemment. Ce sentiment pourrait installer un état d’esprit inflationniste dans l’économie, ce qui compliquerait encore davantage les efforts pour ramener la hausse des prix au niveau de 2,0 % privilégié par la Fed. La Fed augmente ses efforts pour resserrer le crédit et ralentir la croissance parce que l’inflation annuelle a atteint 8,6 %, un sommet de quatre décennies, pour se répandre dans davantage de secteurs de l’économie, sans montrer de signe de ralentissement. La Réserve fédérale des États-Unis a intensifié sa lutte contre l’inflation en haussant son taux d’intérêt directeur de trois quarts de point de pourcentage - sa plus forte augmentation en près de trois décennies - et en signalant que d’autres hausses importantes surviendront, ce qui pourrait augmenter le risque de récession.

This is a comparison of Wednesday's Federal Open Market Committee statement with the one issued after the Fed's previous policymaking meeting on May 4.

The first issue that the S&P 500 is now in bear market territory. That typically means a recession is coming. The U.S. Treasury yield curve is also partially ...

Markets have already pricing in rising rates and potential risks to growth, so today’s news is no big surprise as markets adjusted to the chance of a 0.75% move in recent days. As much as the Fed wants inflation lower, the other primary part of their mandate is to maintain robust employment. It was notable that today’s Fed move didn’t have complete consensus. To that end interest rates were raised by 0.75%, the Fed hasn’t made a move that large in over 20 years, but then inflation is running at levels not seen in around 40 years. Fed policy makers now believe that interest rates will end 2022 at around 3.5% and perhaps exceed 4% in 2023, compared to 1.25%-1.5% after today’s meeting. The most recent CPI report did not provide much comfort that U.S. inflation is under control prompting the Fed to make a large move in rates.

Federal Reserve Chair Jerome Powell said Wednesday the central bank could raise interest rates by a similar magnitude at the next policy meeting in July.

The committee then sees the rate rising to 3.8% in 2023, a full percentage point higher than what was seen earlier this year. The Fed's move Wednesday comes with inflation running at its fastest pace in more than 40 years. "Clearly, today's 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common."

The Federal Reserve hiked its benchmark short-term rate to a range of 1.5% to 1.75%

Investments around the world, from bonds to bitcoin, have tumbled on fears surrounding inflation and the prospect that the Fed’s aggressive drive to control it will cause a recession. The yield on the 2-year Treasury note, a benchmark for corporate borrowing, has jumped to 3.3%, its highest level since 2007. It could announce a larger hike in September if record-high levels of inflation persist. Other central banks are also acting swiftly to try to quell inflation, even with their nations at greater risk of recession than the U.S. The European Central Bank is expected to raise rates by a quarter-point in July, its first increase in 11 years. The BOE will hold an interest rate meeting on Thursday. The president has stressed his belief that the power to curb inflation rests mainly with the Fed. But they expect inflation to still be 5.2% at the end of this year, much higher than they’d estimated in March. Speaking at a news conference Wednesday, Powell suggested that another three-quarter-point hike is possible at the Fed’s next meeting in late July, if inflation pressures remain high. The 10-year Treasury yield, which directly affects mortgage rates, has hit 3.4%, the highest level since 2011. This sentiment could embed an inflationary psychology in the economy that would make it harder to bring inflation back to the Fed’s 2% target. The Fed’s three-quarter-point rate increase exceeds the half-point hike that Chair Jerome Powell had previously suggested was likely to be announced this week. Yet the Fed’s rate hikes are blunt tools for trying to lower inflation while also sustaining growth.

Federal Reserve Chair Jerome Powell, who's carefully telegraphed interest rate hikes over four years, looks likely to abandon gradualism and move more ...

He’s got to wear the black suit and dark tie.” The projections could show the jobless rate rising in 2023 and 2024 from a 3.5% forecast for this year. US retail sales fell in May for the first time in five months, restrained by a plunge in vehicle purchases and other big-ticket items, Commerce Department figures showed Wednesday. Excluding vehicles, sales rose 0.5% last month. The code for recession is whether they see unemployment going up in 2023 or not. Markets have now provided the Fed with an opportunity to move more swiftly.” The FOMC gave investors several months of notice before stopping its purchases of Treasuries and mortgage-backed securities and raising interest rates from zero in March. The Fed is concerned by “upside risk to the inflation-generating process. The Fed has a goal of 2% inflation, based on a separate measure -- the personal consumption expenditures price index, which was running at 6.3% in April. You can’t make the mistake of the 1970s. Powell last month said the Fed wasn’t actively considering a 75 basis-point move, while not ruling it out if conditions changed. Citigroup Inc. and Bank of America Corp. economists are among those who still think the Fed will shift by 50 basis points as previously planned. “You worry about the risk of breaking something.

NEW YORK — The S&P 500 rose more than 1% in choppy trading on Wednesday after a policy announcement by the Federal Reserve that raised interest rates to ...

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La Bourse de New York a accueilli avec soulagement la détermination de la banque centrale américaine (Fed) à juguler l'inflation en relevant fortement ...

Le dollar s’est un peu affaibli après une envolée à un plus haut depuis vingt ans mardi. Le fabricant de vaccins Moderna a été salué (+5,73 % à 128,53 dollars) après qu’une étape cruciale a été franchie vers la vaccination des nourrissons et des tout petits contre le Covid-19, avec la recommandation favorable d’experts pour l’autorisation de son sérum ainsi que de celui de Pfizer (+1,23 % à 48,51 dollars). Mais le marché a apprécié, selon lui, le fait que la Fed reste ouverte « à relever les taux de 50 points de base ou bien de 75 points à la prochaine réunion de juillet ». « Cette option est bienvenue, car le marché craint que la Fed n’en fasse trop ». Jerome Powell, le président de la Fed, a souligné dans sa conférence de presse que « l’économie était encore forte et qu’il pensait parvenir à un atterrissage en douceur en réduisant le bilan de la Fed et en relevant les taux », a ajouté M. Cardillo. Pour Peter Cardillo de Spartan Capital, « la Fed a parlé fermement et le marché a aimé ça ». « Même si le marché baissier va continuer pendant un moment, il a réagi de manière favorable et les rendements obligataires ont baissé après la forte hausse du début de semaine », a souligné l’analyste. « La Fed a souligné le sérieux de sa mission avec sa première hausse de taux de 75 points de base (0,75 point de pourcentage) depuis 1994, en agissant rapidement en prévision d’une accélération de l’inflation », a commenté Chris Low, économiste en chef de FHN Financial.